Effect of Local Market and IT Infrastructure of Emerging Markets on American’s MNCs

Pooya Sabetfar, Cheng Fan Fah, Reza Hajimohammadi

Abstract

Brazil, India, and China have been emerged as the new markets for multinational corporations (MNCs).The opportunities for Multinational Corporations (MNCs) in other emerging markets are infinite, but before a MNC decides to invest, there are some questions that they should be asked by themselves about IT infrastructure, cultural issues, distribution networks and business model. With considering the large middle class, vast resources, privatization and economic reforms, these countries now offer a great deal of investment opportunities. This paper has quantitative analysis that studies the difference between local market from cultural issues and IT infrastructure of these emerging markets from the prospect for investing American companies in the countries. For Distinguishing between low, medium and high IT infrastructure of the countries, we used the number of fixed line, mobile phone subscribers and internet users. According to the results, Brazil is the best choice for American multinational firms from local market and IT infrastructure point of view, India is lowest class and China is the middle class emerging market between these host countries.

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